New Delhi, Jan 26 (IANS): The Society of Manufacturers of Electric Vehicles (SMEV) on Thursday urged the government to reduce the GST rate on electric vehicles (EVs) and the sub-systems used for their manufacture to 5 per cent.

According to the industry body, unreasonably high GST has become "one of the key impediments" to faster adoption of electric vehicles in the country.

"GST reduction is critical to achieve FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) targets and galvanise e-vehicle industry," Sohinder Gill, Director, Corporate Affairs, SMEV was quoted as saying in a statement.

Gill also sought a rebate on income tax for consumers adopting EVs.

"Many countries such as Norway, France, Canada, Denmark and Netherlands have already implemented this policy in their respective systems and have garnered a plethora of benefits out of it," the statement said.

"Similar policy can be introduced in India...."